Nissan to Offer Early Retirement to Japan Employees; 1st Such Offer in 18 Years

The Yomiuri Shimbun

17:46 JST, May 18, 2025

Nissan Motor Co. is planning to offer early retirement to employees in administrative positions in Japan from July to August, according to sources close to the company.

The move is part of the company’s plan to cut 20,000 jobs worldwide as it makes efforts to restructure.

The company plans to provide extra retirement allowances and job-placement assistance to the early retirees, according to the sources, who also said it is the first time since 2007 that the automaker has offered early retirement to Japan-based employees.

The sources said the company has already notified relevant employees of its plan.

In explaining the reasons behind the decision, the company reportedly said that optimizing administrative expenses is becoming extremely important amid the increasingly difficult business environment brought about by U.S. President Donald Trump’s tariff measures and other novel factors.

The early retirement program covers a wide range of job categories, including sales and accounting. However, development, production and design divisions will be excluded.

The program covers full-time employees aged from 45 to 64 who have worked at the company for at least five years and are section or department heads, acting section chiefs or below. The program also covers those reemployed after reaching retirement age. The company did not present the specific number of people to be offered early retirement.

Nissan plans to reveal more details to its employees as early as mid-June, the sources said.

The automaker reported a net loss of ¥670.8 billion in its consolidated financial results for the fiscal year ending March 2025. Last Tuesday, it announced a new business restructuring plan, called Re:Nissan, that will reduce its workforce by about 20,000 people — equivalent to 15% of its worldwide workforce. Of those workers, 65% will come from manufacturing divisions, such as plants, 18% from administrative divisions, and 17% from research and development divisions, the company said. The number includes contract workers.

Nissan says it is targeting a cut of ¥250 billion to its fixed costs, such as personnel expenses, by fiscal 2026 through workforce reduction and other measures.

At a press conference last Tuesday, Nissan CEO Ivan Espinosa said the company’s fixed costs are higher than its current revenue can support. He added that measures must be taken to keep Nissan going.

In the manufacturing divisions, the company plans to cut seven plants worldwide by fiscal 2027. According to a draft plan on the reorganization of its plants, Nissan is also considering plans to close its flagship Oppama plant in Yokosuka and the Shonan plant of its subsidiary Nissan Shatai Co. in Hiratsuka, both of which are in Kanagawa Prefecture.

With regard to the plant closures, the company in a statement on Saturday said: “At this time, we will not be providing further comments on this matter. We are committed to maintaining transparency [with our stakeholders] and will communicate any relevant updates as necessary.”